Grayscale: AAVE is currently undervalued, fair value could rise to about $175 within a year

CoinFeed June 18 news, Grayscale Research released a report stating that it believes the fair value of the AAVE token could rise to about $175 within a year, and the current price of $75 is undervalued. The report points out that DeFi protocols have generated nearly $25 billion in fees cumulatively since 2023, becoming an asset class that generates real revenue. Grayscale categorizes crypto assets on a spectrum from pure commodities to cash-flow-driven assets, with AAVE, UNI, and SKY being closer to cash-flow assets. The report notes that Aave's protocol revenue has grown over 6.6 times in the past three years, with an operating margin of about 50%. The report estimates that Aave will earn approximately $60 million in revenue in 2026, and based on a 20-25x P/E ratio for fintech companies, the current fair value market cap is $1.2-1.5 billion, corresponding to a token price of $80-100.